Will selling your house drain your wallet? Many homeowners list their property without understanding the true financial impact. There are numerous expenses you should consider before partnering with an agent. In our latest post, we break down the real costs you’ll face when selling a home in Lubbock!
Have you made the decision to sell your Lubbock property? Before finalizing your approach, consider all available options! Remember, the traditional listing process incurs costs both immediately and at closing. These expenses must be calculated when determining your asking price and choosing the right selling partner.
Research indicates the average selling cost of a house in the United States is a staggering $15,200! That’s a significant financial burden! Keep in mind, this figure fluctuates widely depending on your location and property value.
Will Selling Cost You Money in Lubbock?
Agent Commissions – You’ll typically pay around 6% of your home’s final selling price in commissions. This amount is specified in your listing agreement. While not paid upfront, it significantly reduces your net proceeds. This crucial factor must be considered when pricing your property.
Agent Fees – Beyond commissions, agencies often charge additional fees throughout the selling process. Many agents transfer marketing and listing expenses directly to clients. Ensure you understand what’s included in their service and what extra costs you’ll face before and after the sale.
Closing Costs – These encompass numerous expenses paid at settlement. They include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees and more. Budget approximately 2% of your final sale price for these closing expenses.
Taxes – When you list your home, you remain responsible for property taxes, utilities, and homeowners insurance until closing day. These ongoing costs can accumulate to thousands if your property takes months to sell and close. Once you decide to sell, a quick resolution benefits your bottom line!
Preparing Your House for The Market – Significant resources, time, and money go into preparing a property for sale. You’ll face repair costs, painting expenses, and carpet cleaning bills. Personal items must be removed and the home properly staged. Whether hiring professionals or handling it yourself, you’ll likely purchase new decorative elements. The yard requires attention too, with potential landscaping investments to enhance curb appeal.
Inspections – Though not mandatory, an increasing number of sellers invest in pre-listing home inspections. This typically costs $200 or more. By identifying issues beforehand, you can address problems before your buyer’s inspection reveals them. This proactive approach also strengthens your position during negotiations.
Storage and Moving – While relocation isn’t technically a selling expense, it represents a significant cost after closing (if not before). Whether hiring professional movers or managing it yourself, moving expenses add up quickly! Consider your distance, transportation needs, and potential labor costs. Storage expenses are another factor if you’re living in the home during the selling process. Decluttering early improves presentation and simplifies your eventual move.